{"id":1338,"date":"2019-09-12T14:50:36","date_gmt":"2019-09-12T13:50:36","guid":{"rendered":"https:\/\/crowdforangels.com\/blog\/?p=1338"},"modified":"2019-11-14T09:24:40","modified_gmt":"2019-11-14T09:24:40","slug":"clever-companies-can-get-more-from-eis","status":"publish","type":"post","link":"https:\/\/crowdforangels.com\/blog\/clever-companies-can-get-more-from-eis\/","title":{"rendered":"Clever Companies Can Get More From EIS"},"content":{"rendered":"\n
\"Calculator<\/figure>\n\n\n\n

Since the Enterprise Investment Scheme (EIS) was launched in 1994 thousands of small UK companies have used the government boon to raise growth capital for their businesses. According to HMRC statistics, in the 2017-18 tax year 3,920 companies raised a total of \u00a31.93 billion of funds under EIS. Since launch, that took the total number of companies to 29,770 and funds invested to more than \u00a320 billion.<\/p>\n\n\n\n

To give a broad overview, EIS offers investors in qualifying\ncompanies a range of generous tax benefits, including income tax relief, loss\nrelief and exemption from capital gains tax. To encourage long-term investment,\nthe\nshares must be held onto for a minimum length of time, typically three years,\nbefore the tax reliefs can be claimed. Normally, companies can raise up to \u00a35\nmillion each year through EIS and a maximum of \u00a312 million during their\nlifetime.<\/p>\n\n\n\n

However, in order to further encourage the development of the UK\u2019s\nknowledge economy, the government makes it easier for so called \u201cknowledge\nintensive companies\u201d to raise EIS funds. Broadly, knowledge intensive companies\n(KICs) are those that are carrying out research and development at the time\nthat they are issuing shares and are looking to make revenues from exploiting\nintellectual property.<\/p>\n\n\n\n

As a\nknowledge intensive company, you can raise up to \u00a310 million of EIS investment\nper year (double the usual \u00a35 million) and \u00a320 million over the company\nlifetime (up from \u00a312 million). Criteria that other companies have to meet are\nalso relaxed, with KICs allowed to raise money up to 10 years following their\nfirst commercial sale, as opposed to seven for non-KICs. Also, KICs are allowed\nto have up to 499 full-time equivalent employees when the shares are issued\ncompared to fewer than 250 for other firms.<\/p>\n\n\n\n

In order to qualify as a KIC there are also terms\nregarding operating costs and employee skill levels.<\/strong><\/p>\n\n\n\n

To\nqualify as a KIC you must spend money from your overall operating costs on\nresearch, development or innovation. This should be either 10% a year for 3\nyears or 15% in one of 3 years. If your company is at least 3 years old, you\nmust have done this in the 3 years before the investment. If your company is\nless than 3 years old, you must do this in the 3 years following the\ninvestment. You\u2019ll need to submit a schedule, supported by accounts to show\nthat you have.<\/p>\n\n\n\n

For\nemployees, 20% must be carrying out research for at least 3 years from the date\nof investment – these employees must be in a role that requires a relevant\nMaster\u2019s or higher degree. They must also be carrying out work to create\nintellectual property and you should expect the majority of your business to\ncome from this within 10 years.<\/p>\n\n\n\n

If you are a Knowledge Intensive Company looking for money to expand your business, Crowd for Angels can help with both EIS applications and fund raising. For more information visit <\/em><\/strong>https:\/\/crowdforangels.com\/funding<\/em><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Since the Enterprise Investment Scheme (EIS) was launched in 1994 thousands of small UK companies have used the government boon to raise growth capital for their businesses. According to HMRC statistics, in the 2017-18 tax year 3,920 companies raised a total of \u00a31.93 billion of funds under EIS. Since launch, that took the total number […]<\/p>\n","protected":false},"author":3,"featured_media":242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[107,175],"tags":[183,184,187,16,88,177,24,188,185,186,20],"yoast_head":"\nClever Companies Can Get More From EIS - Crowd for Angels | Blog<\/title>\n<meta name=\"description\" content=\"EIS offers investors in qualifying companies generous tax benefits, including income tax relief, loss relief and exemption from capital gains tax.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crowdforangels.com\/blog\/clever-companies-can-get-more-from-eis\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Clever Companies Can Get More From EIS - Crowd for Angels | Blog\" \/>\n<meta property=\"og:description\" content=\"EIS offers investors in qualifying companies generous tax benefits, including income tax relief, loss relief and exemption from capital gains tax.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/crowdforangels.com\/blog\/clever-companies-can-get-more-from-eis\/\" \/>\n<meta property=\"og:site_name\" content=\"Crowd for Angels | Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-12T13:50:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-11-14T09:24:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/crowdforangels.com\/blog\/wp-content\/uploads\/2016\/09\/calculator-385506_960_720.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"960\" \/>\n\t<meta property=\"og:image:height\" content=\"565\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Richard Gill\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/crowdforangels.com\/blog\/#organization\",\"name\":\"Crowd for Angels\",\"url\":\"https:\/\/crowdforangels.com\/blog\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/crowdforangels.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/crowdforangels.com\/blog\/wp-content\/uploads\/2019\/06\/logo_cfa-square-.png\",\"contentUrl\":\"https:\/\/crowdforangels.com\/blog\/wp-content\/uploads\/2019\/06\/logo_cfa-square-.png\",\"width\":600,\"height\":600,\"caption\":\"Crowd for Angels\"},\"image\":{\"@id\":\"https:\/\/crowdforangels.com\/blog\/#\/schema\/logo\/image\/\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/crowdforangels.com\/blog\/#website\",\"url\":\"https:\/\/crowdforangels.com\/blog\/\",\"name\":\"Crowd for Angels | Blog\",\"description\":\"Crowd for Angels Blog & Articles\",\"publisher\":{\"@id\":\"https:\/\/crowdforangels.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/crowdforangels.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/crowdforangels.com\/blog\/clever-companies-can-get-more-from-eis\/#primaryimage\",\"url\":\"https:\/\/crowdforangels.com\/blog\/wp-content\/uploads\/2016\/09\/calculator-385506_960_720.jpg\",\"contentUrl\":\"https:\/\/crowdforangels.com\/blog\/wp-content\/uploads\/2016\/09\/calculator-385506_960_720.jpg\",\"width\":960,\"height\":565,\"caption\":\"Calculator image\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/crowdforangels.com\/blog\/clever-companies-can-get-more-from-eis\/#webpage\",\"url\":\"https:\/\/crowdforangels.com\/blog\/clever-companies-can-get-more-from-eis\/\",\"name\":\"Clever Companies Can Get More From EIS - 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